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ECONOMIC COMPETITIVENESS IN SM å LAND-BLEKINGE (Ch.2) Yancy Vaillant Regional Development Policy Division Directorate for Public Governance and Territorial Development OECD. 10 November 2011. Competitiveness in Sm å land-Blekinge. Sm å land- Blekinge development paradox:

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10 november 2011

ECONOMIC COMPETITIVENESS IN SMåLAND-BLEKINGE (Ch.2)YancyVaillantRegionalDevelopment Policy DivisionDirectorate for Public Governance and Territorial DevelopmentOECD

10 November 2011

competitiveness in sm land blekinge
Competitiveness in Småland-Blekinge

Småland-Blekinge development paradox:

The region has continued to compete successfully in sectors which in other OECD countries have largely lost out to developing countries.

Ronneby Seminar

competitiveness in sm land blekinge1
Competitiveness in Småland-Blekinge

Development of knowledge-intensive businesses is a promising route for ensuring the maintenance and growth of the region’s prosperity

Ronneby Seminar

competitiveness in sm land blekinge2
Competitiveness in Småland-Blekinge

“knowledge-based economies”

- economies which are directly based on the production, distribution and use of knowledge and information (OECD 1996).

Ronneby Seminar

competitiveness in sm land blekinge3
Competitiveness in Småland-Blekinge

The four counties have a promising firm structure,

but an urgent need of new skills to make the most of that structure.

Ronneby Seminar

competitiveness in sm land blekinge4
Competitiveness in Småland-Blekinge

The adjustment of the local industrial fabric will require:

A prior shift in the characteristics and availability of the local labour supply,

But, this will not occur unless skilled workers find Småland-Blekinge an attractive place to live and work.

Ronneby Seminar

competitiveness in sm land blekinge5
Competitiveness in Småland-Blekinge

Need for simultaneous change:

Shift in local industry

and

in the local labour markets

Must change together to successfully transition towards a more strategic and competitively sustainable future.

Ronneby Seminar

competitiveness in sm land blekinge6
Competitiveness in Småland-Blekinge

Three main targets for closing labour-market mismatches in the transition towards a knowledge-driven economy are:

  • Better integrate young people in the regional economy;
  • Attract talent from outside; and
  • Better integrate women in the private sector.

Ronneby Seminar

opportunities for youth
Opportunities for Youth
  • Young people may well be a leading indicator of a region’s future trajectory…
  • …but youth in Småland-Blekinge tend to leave the region

Ronneby Seminar

opportunities for youth1
Opportunities for Youth

Steps to retain and regain skilled youth:

  • Assure a good match between the educational system and local business;
  • Promote a favourable framework for the personal and entrepreneurial development of youths; and
  • Engage youth in the development of the region.

Ronneby Seminar

opportunities for immigrants1
Opportunities for Immigrants

Immigrant labour may also play an essential role in filling the existing skilled labour gap

Foreign students should be encouraged to stay

Opportunities for immigrant entrepreneurship should also be promoted

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opportunities for women
OpportunitiesforwOMEN

Ronneby Seminar

opportunities for women1
Opportunities for Women

A knowledge-based economy will help change the labour market gender bias, and vice versa

Better integration of women in the private sector should be favoured

Through entrepreneurship the human capital potential of women can be more effectively utilised

Ronneby Seminar

attractiveness of sm land blekinge
Attractiveness of Småland-Blekinge

Things that can help make Småland-Blekinge an attractive place:

  • The region’s natural and cultural amenities;
  • A stronger and more diversified business framework;
  • Improved regional connectivity to better promote regional development.

Ronneby Seminar

amenity based development1
Amenity-Based Development
  • Natural Amenities,
  • Cultural Amenities,
  • Systems Amenities

Ronneby Seminar

amenity based development2
Amenity-Based Development

ABTD requires agreement on how to promote, protect and make productive use of local amenities

Good public and private services can complement the attractive power of natural and cultural assets

Ronneby Seminar

framework for competitiveness1
Framework for Competitiveness

Local businesses need to modernise and diversify

Share of workers in professional and scientific activities

Ronneby Seminar

framework for competitiveness2
Framework for Competitiveness

Need for quality entrepreneurship:

Allows a territory to commercialise its endogenous resources and capabilities efficiently and sustainably through an optimal use of the region’s human capital, whether as entrepreneur or as employee.

Ronneby Seminar

framework for competitiveness3
Framework for Competitiveness

However, business retention and expansion are as important as business creation.

For this, authorities must have clear and unbiased knowledge of the local business fabric.

(public-private relationship, trust and better coordination)

Ronneby Seminar

better conectivity
BETTER CONECTIVITY

Ronneby Seminar

improving regional connectivity
Improving Regional Connectivity

Increasing regional attractiveness, competitiveness and interactions requires better connectivity,

but, Småland-Blekinge’s existing Regional Connections are in need of improvement…

Ronneby Seminar

improving regional connectivity1
Improving Regional Connectivity

New strategic role of south-east in a new eastern-oriented trade context.

Firms in Småland-Blekinge may be particularly well situated to take advantage of these opportunities,

which fall in line with the region’s need for a new diversified client base.

Ronneby Seminar

improving regional connectivity2
Improving Regional Connectivity

However, better connectivity requires better territorial co-ordination…

Improvements in infrastructure are necessary, but not enough!

Ronneby Seminar

conclusions
CONCLUSIONS

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conclusion
Conclusion

A shift is needed in Småland-Blekinge’s labour force to encourage the transition towards a greater value-added and knowledge-intensive business model.

There is a need to better promote the area’s strong endowments and improve connectivity in the region,

Strong SME structure and managerial capabilities are a good basis for establishing a modern knowledge-based economy.

Ronneby Seminar

10 november 20111

ECONOMIC COMPETITIVENESS IN SMåLAND-BLEKINGE (Ch.2)YancyVaillantRegionalDevelopment Policy DivisionDirectorate for Public Governance and Territorial DevelopmentOECD

10 November 2011